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DepEd reiterates observance of P4k Net Take Home Pay threshold

October 26, 2017

PASIG CITY, October 26, 2017 – The Department of Education (DepEd) on Thursday moved to ensure that teachers will receive no less than P4,000 as Net Take Home Pay (NTHP) as it prioritizes loan deductions due for the Government Service Insurance System (GSIS) and the Home Development Mutual Fund (HDMF).

Teachers’ NTHP threshold shall be safeguarded following the issuance of DepEd Order No. 55 (DO 55), series 2017, or the “Revised Guidelines on the Implementation of P4,000 Net Take Home Pay for the Department of Education Personnel,” signed by Education Secretary Leonor Magtolis Briones.

“This is one of the Department’s move to protect the interest of our teachers and personnel. We are also examining emergency measures to assuage the situation of those who have been negatively affected by the recent loan deduction,” the Education Secretary emphasized.

Under the said Order and pursuant to Section 47 of the General Provisions of Republic Act (RA) No. 10924, or the “General Appropriations Act of 2017,” contributions or obligations of premiums and loans to the GSIS and HDMF shall be given priority in deductions from salaries of employees. The same primacy shall be accorded to payments for the Bureau of Internal Revenue (BIR) and the Philippine Health Insurance Corporation (PhilHealth).

Secretary Briones, through the Order, reiterated the necessity of DepEd Authorized Approving Officers (AAOs) to “exercise due diligence” in certifying and ensuring that the DepEd personnel applying for loans are well aware of their capacity to pay, and of the interests and penalties that they may incur in case of delayed payment.

All DepEd personnel are also reminded to ensure that they have the capacity to pay loans being applied under the Automatic Payroll Deduction System (APDS), while non-mandatory deductions or loans not deducted under the APDS are to be paid by the personnel directly to the respective lenders.

While teachers in public schools receive salaries higher than those in private schools and other sectors of government service, teachers across the country have incurred P178 billion worth of loans from Private Lending Institutions (PLIs) and P123 billion liability due to GSIS as of December 2016.

“Although the net pay may increase or decrease, depending on the GSIS, HDMF, PhilHealth, BIR and other deductions, we would like to assure all DepEd personnel that their net pay, which goes to the provision of their daily needs, will not go lower than the P4,000 threshold. With this, we continue to identify and implement measures that will enable our teachers and personnel to manage their finances and retire comfortably in the future,” the Secretary added.